An overview of reusable surgical textiles in the North Amer - PowerPoint Presentation

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An overview of reusable surgical textiles in the North Americanmarket

Dan Sanchez

Vice President

Medcrest Textiles Division

Medline Industries, Inc.Slide2

Medline History

Textiles is our Heritage

Started almost 100 years ago as a textile companyMedline pioneered many textile innovations that are now widely-used in healthcare today:Colored scrubs, printed patient gowns, knitted sheetsLargest U.S. Provider of Healthcare Textiles in the USAApproximately 36% healthcare market share in the U.S.Over 19,800 textile customers#1 or #2 healthcare market position in every major categorySlide3

$4 Billion in sales

6000+ employees

Number one privately held manufacturer and distributor of health care products in the U.S.

40+ years of consecutive growth4th generation family leadership1000 person dedicated sales forceSteady International Growth

Medline Sales HistorySlide4

Historical Development of the Reusable Market

Until the 1950’s “Muslin” material was the accepted reusable surgical material

The belief was it would stop airborne microbes & was a T140, 100% Cotton material

The fabric was white in color and produced glare which tired the surgeons eyes – Medline introduced color into the Operating Room by coloring the gowns and drapes green to reduce glareSlide5

Historical Development of the Reusable Market

In 1952 William C. Beck reported “muslin material may have been considered an acceptable bacteriological barrier when dry, but lost whatever barrier capability it possessed once it became wet”.

New fabrics were developed with a higher thread count and chemical finishes such as “

Quarpel” were appliedHowever not much changed at the hospital level for about a decade as they continued to use Muslin fabricsAt the same time disposable fabrics were being developed and their use began to increaseSlide6

Historical Development of the Reusable Market

In the late 1980’s Reusable Surgical Textiles finally improved substantially

100% polyester materials were developed that provided a very good barrier to fluids and strike through

In the early 1990’s Gore was introduced as a Liquid Proof and Breathable fabric for surgeons gownsUnfortunately the barn door was left open and the horse was gone!Slide7

Disposable Surgical Textiles

During the 70’s and 80’s the use of disposable surgical textiles surged higher

The U.S. government reimbursed hospitals for single use items on a cost plus basis

Hospitals used disposables to generate revenueReusable Surgical Textiles were not reimbursableThe technology for disposables was better than the reusable'sSlide8

Organisation of The Reusable Market

As of 2004, through a survey it was estimated disposables had captured 84% of the market for surgical textiles in the USA

Disposables promised the product would be perfect every timeWhereas, with reusable's you would need to have faith the laundry had processed, inspected and repaired the textile item appropriately

Sadly, many laundries were not meeting expectationsSlide9

Organisation of The Reusable Market

U.S. ~ 20 Million Surgical Procedures Annually

Gowns~ 85% Disposable – 15% Reusable

Primarily Level 3 and 4 (using AAMI Guidelines)Drapes~ 85% Disposable Table Covers and Mayo Stand Covers – 15% Reusable~ 95% Disposable Patient Drapes – 5% ReusableSlide10

Organisation of The Reusable Market

Canada ~ 2 Million Surgical Procedures Annually

Gowns60% Disposable – 40% Reusable

Reusable's are ~ 80% Level 4Balance is a mix of Level 3 and Level 2Disposables are ~ 75% Level 3, 25% Level 4Drapes70% Disposable – 30% ReusableSlide11

Organisation of The Reusable MarketMexico – number of procedures unknown

Gowns and Drapes are about 60% Reusable

~ 50/50 split between cotton and microfiberRapidly transitioning to disposable gowns and drapes Slide12

Medline’s Position In The Reusable Market

USA

31% Market SharePrimarily Gowns, Wrappers, Table Covers and Mayo StandsCanada

30% Market SharePrimarily Gowns, Wrappers, Table Covers and Mayo StandsMexicoVery little Reusable salesSlide13

Medline’s Position In The Reusable Market

Complete Delivery on a Rental Basis

Sterile RecoveriesCan cover about 70% of the USA

About $100 M in revenueComprised of reusable's textiles, stainless steel and disposable sterile packsPrimarily Level 4 and 3; some level 2Other Laundries with Sterilization CapabilityHLS – IllinoisMUHL – WisconsinComtex – OhioCrown Laundry – AlabamaMayflower - MarylandSlide14

Promotion of Reusable's

Creating a sustainability catalog that draws from every division (20) within Medline

Providing support to build Pack Rooms and provide guidance in meeting FDA regulations within laundries

Dedicated Textile Sales Representatives to sell textiles in the USA and CanadaImplementing “Hybrid” programs to provide a mix of Reusable's and Disposables – this will increase our reusable sales by 10 to 30%Slide15

Promotion of Reusable's

Continue to educate on the AAMI Guidelines:Slide16

The Position of Reusable's vs. Disposables

Reusable Surgical Textiles have the ability to provide a cost effective alternative to Disposables

The U.S. Government is reducing its funding for hospitalsHospitals must find ways to cut cost and save money

Adding a pack room to the laundry and converting to reusable's is one potential savingsSlide17

The Position of Reusable's vs. Disposables

Cost Savings Analysis:

Product

Gown pack costGowns used per year*Annual SpendXL Ultra Level 3 - KC 95121$2.5712,900

$33,153

XL Fabric Reinforced (no level)

$2.71

2,556

$6,927

Total

$40,080

Medline Reusable Level 3

$1.93

12,900

$24,883

Medline Reusable Level 4

$2.67

2556

$6,826

Total

$31,710

Annual Savings moving to Reusable Gowns

$8,370

% Savings moving to Reusable Gowns

20.9%Slide18

The Position of Reusable's vs. DisposablesReusable's are also primarily synthetic and do not produce lint which coincides with the objective of AORN in the USA and ORNAC in Canada

Many hospitals have established “Green” committees to try and become more environmentally friendly

We must support their efforts with documentation on our sustainable productsSlide19

SummaryReusable Textiles have dramatically changed in the past 100 years from Muslin to high tech synthetic materials

Disposables filled the vacuum we provided when our product did not have the required barrier properties

Government helped to reinforce the transition to disposables

We must prove our products are cost effective and sustainable to win over new customersSlide20

Thank You!